Which of the following is NOT a source of capital for healthcare businesses?

The correct answer indicates that profits from illegal activities are not a legitimate or recognized source of capital for healthcare businesses. Instead, healthcare organizations typically rely on structured and legal avenues for funding that align with regulatory standards and ethical practices.

Debt, equity, and fundraising all represent conventional and acceptable methods of raising capital. Debt involves borrowing money that must be repaid with interest, typically through loans or bonds. Equity financing refers to raising funds by selling ownership stakes in the company, which can involve issuing stocks or shares to investors. Fundraising can encompass a variety of activities aimed at gaining financial support from individuals, organizations, or charitable contributions, all of which are conducted within legal frameworks.

Using profits from illegal activities, on the other hand, poses significant legal risks and ethical dilemmas. Engaging in such practices could lead to severe consequences, including legal action, loss of licenses, and damage to reputation, which are particularly detrimental in the healthcare sector where trust and integrity are paramount. Therefore, this option is correctly identified as not being a legitimate source of capital for healthcare businesses.